Answer:
The correct answer is option A.
Explanation:
The present value of all free cash flows gives the share value under the free cash flow approach to valuation. It is also called a discounted cash flow valuation.
Answer:
Horizontal scope refers to the Multiple Choice 0 O range of activities that the firm performs internally. 0 O range of product and service segments that a firm can serve within its focal market, 0 extent to which a firm engages in the various activities from initial activities all the way to after-sales activities. 0 O decision to outsource or insource certain processes of a company. 0 extent to which strategic alliances and partnerships are used.
Explanation:
Answer:
Total market value of shares = 1.25 billion x $20 = $25 billion
Market value of shares after share repurchase = $25 billion - $5 billion
= $20 billion
No of shares after repurchase = <u>Market value after repurchase</u>
Market price per share
= <u>$20 billion</u>
$20
= 1 billion shares
The correct answer is B
Explanation:
The total market value of shares is obtained by multiplying the number of shares outstanding by the market price per share. The market value after repurchase is total market value of shares less value of shares repurchased. The number of shares outstanding after repurchase is the market value after repurchase divided by the market price per share.
Answer:
relational switching cost
Explanation:
Switching costs are those related to expenses that a customer assumes when switching from a product or service provider, are expenses related to effort, money, time among others.
Costs are often low in a fragmented market and low and high in a consolidated market with few substitute products.
There are three types of switching costs:
- procedure,
- financial,
- relational.
Relational switching cost is one that is not quantifiable, but concerns consumer resistance and discomfort in adapting to change from a new supplier.
